Podcast Notes Key Takeaways

• The VC firms make 7-10x or in some cases 15x returns on their investment
  • It’s really the unicorns (companies worth $1 billion or more) and decacorns (companies worth $10 billion or more) that allow for those kinds of extreme returns
• Most of the investments in any VC portfolio will fail but you only need 2-3 home runs to earn a great return. Those home runs can return 1,000 or 10,000x your initial investment.
  • “It’s complete power-law dynamics here where you have one investment or a couple of investments that scale up so quickly that it actually doesn’t matter. Like all of your other investments literally do not matter.” – Avlok Kohli
• A rolling fund does 3 things differently: 
  • You don’t have to raise all of the money upfront
  • You don’t have to go beg for money every time like a syndicate (the money is in the bank account)
  • You can publicly talk about your fund and solicit investments
• Venture funds were built in a world without software, that’s why there outdated
  • “Rolling funds are what a venture fund structure would’ve looked like if it was built in the age of software, and so that’s what we did” – Avlok Kohli
• Don’t buy a company based on its revenue multiple, buy it based on its profitable multiple
• “It’s harder to have a stable, durable business in internet land because internet land is so dynamic and changes so much and is so competitive unless you have a moat” – Xavier Helgesen

Today’s episode is a double header. Sam Parr (@theSamParr) is out today, so Shaan Puri (@ShaanVP) hosts the pod today with two guests Xavier Helgesen (@XavierHelgesen) Co-CEO of Enduring Ventures and Avlok Kohli (@Avlok) CEO of AngelList. In today’s episode you’ll hear: Avlok gives his background on how he became CEO of AngelList (1:55 ), Shaan asks Avlok how he Fast Buy got acquired so fast (6:15 ), Avlok shares some ideas he has for the future of business (11:15 ), Shaan and Avlok talk about how to improve meetings (13:20 ), Shaan asks Avlok some of the cool companies he’s seen at AngelList (18:45 ), Shaan asks “What’s it like working with Naval?” (23:20 ), Shaan and Avlok talk about the problems with traditional funds and the potential with rolling funds (25:30 ). Shaan interviews Xavier Helgesen (54:52 ), Xavier gives his background (55:40 ), Shaan asks Xavier about his solar company in Africa (56:40 ), Xavier talks about his CFO-brain and how it’s helped his career (59:30 ), Shaan asks Xavier what he’s interested in lately (61:00 ), Xavier tells about his acquisition of UpCouncil (66:55 ), Shaan asks Xavier how to implement a profit-sharing company (78:20 ), Shaan explains how local and neighborhood networks are simple and profitable (85:10 ), Xavier explains what he looks at in financial statements when looking at a companies to acquire (68:28 ), Shaan asks Xavier if he has an opinion on SPACs (95:15 ), Xavier gives a list of a few books that every entrepreneur should read (102:45 ).

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